“They” say: “Less is MORE!”
I believe this more every day in this new economy.
Doing one less thing can simplify things.
Makes more room for more important things . . .
This works just as well on MACRO scales as does on micro scales.
The Pareto Principle – 20/80 Principle (Pareto Realty’s namesake) gives us some language for this phenomenon. In virtually all things there a disproportionate ratio of results (productivity) from the field of “Performers.”
20% of the performers yield 80% of the results . . . The Vital Few!
80% of the performers yield 20% of the results . . . The Trivial Many!
This principle seems to “work” in all things.
In business, there are many stories about how different organizations dealt with the economic collapse. Some just folded up shop and quit . . . some floundered along and borrowed money to stay alive, but ultimately died . . . and some mysteriously seemed to remain healthy and prosper.
What differentiated the “survivors” from the “victims?”
I think it was all Pareto Principle at work.
The Vital few (20%) cut expenses (overhead) by chopping all the fat from their budgets. They scrutinized their cash flow and became relentless about determining which of their expenses were “Vitally Important” such that they mattered enough to stay in the budget . . . Everything else – The Trivial Many expenses went out the door.
The Vital Few also considered their customers/Clients . . . and thought long and hard about which of those customers were “20%ers” and which were “80%ers” and began to pay attention to how profitable each of these groups were . . . Most came to the conclusion that they could do LESS marketing to attract 80%ers . . . LESS discounting of pricing . . . and focus more on their “Vital Few” – their loyal customers . . .
As a result of that shift, they could downsize operations (Dealing with fewer customers) and offer more of what MATTERED to their Vital Customers . . . who would then INCREASE their purchasing and thereby creating more profit (Best Buys did this)
In the aforementioned “downsizing,” these organizations also applied the Pareto Principle . . . Identifying their 20%er employees . . . 20%er stores . . . 20%er equipment . . .
Not surprisingly, many business owners discovered that they literally do more without @ 80% of their “STUFF” and come out with the same or better profitability.
How might this apply to all of our lives?
Especially during the holiday season as we are all faced with more and more “distractions” (80% stuff) pulling us away from what really matters (20% stuff), we must start thinking a bit more selfishly and say: “YES” to more 20% and “NO” to the 80%.
But of course, none of this really makes sense until or unless we pause the game long enough to figure what is (and who are) the “Vital Few” in our lives . . . What Matters?
PS: I’m putting a VERY cool house on the market this week @ 3510 Belmont Blvd for $499,900 – Will start showing it on Friday . . . Do you know anybody thinking about moving into the Green Hills, Lipscomb area? Have’m call me 🙂